Shares of Starbucks Company (NASDAQ: SBUX) stayed inexperienced on Friday. The inventory has dropped 14% over the previous 12 months. The coffeehouse chain is scheduled to report its first quarter 2024 earnings outcomes on Tuesday, January 30, after market shut. Right here’s a have a look at what to anticipate from the earnings report:
Analysts are projecting income of $9.62 billion for Starbucks in Q1 2024, which compares to $8.7 billion reported in the identical interval a yr in the past. Within the fourth quarter of 2023, revenues elevated 11% to $9.4 billion.
The consensus estimate for Q1 2024 EPS is $0.93, which compares to adjusted EPS of $0.75 in Q1 2023. In This fall 2023, adjusted EPS grew 31% to $1.06.
Factors to notice
Starbucks continues to see sturdy demand globally with each its core choices and new choices performing effectively. The corporate has been benefiting from development in transactions and ticket, which in flip have pushed development in income and comps. These traits are prone to have continued within the first quarter as effectively.
The espresso big continues to see momentum within the US, its largest market, the place it’s benefiting from menu innovation and strategic pricing. The corporate’s efforts in customization and its investments in provide chain and expertise are paying off.
Starbucks has been seeing enchancment in China, its second largest market, after going through a number of headwinds over the previous yr. The momentum throughout its omni-channel experiences comparable to cellular order supply and ecommerce, new retailer development, and the opening of the China Espresso Innovation Park are all indicators of the huge development alternative the corporate has on this area. These components bode effectively for the primary quarter.